DENSO to Establish New Company in Hokkaido, Japan to Produce Automotive Semiconductor Products

 	 
 
Kariya, Japan, Apr 26, 2007 - (JCN Newswire) - DENSO Corporation
announced today that it will establish a new company in Chitose,
Hokkaido, Japan to produce automotive semiconductor products. The new
company - DENSO ELECTRONICS CORPORATION - will have an initial capital
investment of approximately US$17 million (2 billion yen). 

DENSO plans to start production at the new plant in April 2009. By
fiscal 2015, DENSO expects investment in the new operation to total
approximately US$200 million (approximately 24 billion yen), with
projected sales of approximately US$850 million (approximately 100
billion yen).

"In the pursuit of environmental conservation, as well as the safety,
comfort, and convenience of drivers and passengers, automotive
electronic control systems are expected to become more sophisticated and
complex, resulting in an increasing demand for automotive semiconductor
products," said Hiromi Tokuda, senior managing director in charge of
DENSO's Powertrain Control Systems and Electronic Systems Business
Groups. "To meet such increasing demand and establish a competitive
production system in Japan, we have decided to set up a new company in
Hokkaido where there are many talented people." 

DENSO also plans to add an application design function at DENSO
ELECTRONICS CORPORATION to strengthen product development capabilities.

The new company will be DENSO's third production base in Japan to
produce automotive semiconductor products, including the Kota Plant and
the Takatana Plant in Aichi. DENSO will produce automotive semiconductor
products at these three production bases for auto manufacturers and its
group companies worldwide.

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is
a leading global supplier of advanced technology, systems and
components. Worldwide, the company employs approximately 112,000 people
in 32 countries and regions, including Japan. Consolidated global sales
for the fiscal year ended March 31, 2007 totaled US$30.6 billion. DENSO
common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in
Japan. For more information, go to www.globaldenso.com or visit our
media website at www.densomediacenter.com .

New Company Profile

 
Name:              DENSO ELECTRONICS CORPORATION 
Establishment:     April 27, 2007  
Location:          1007-195, Izumisawa, Chitose, Hokkaido 
                   (Chitose Airport Industrial Complex) 
Capital:           US$17 million (2 billion yen)
Ownership:         100 percent owned by DENSO Corporation
Investment:        Approximately US$200 million 
                   (approximately 24 billion yen projected 
                    by fiscal 2015)
President:         Masakazu Sugimoto 
                   (current general manager of Kota Plant)
Business:          Production of automotive semiconductor products
Employees:         Approximately 100 (projected for fiscal 2009)
                   Approximately 1,300 (projected for fiscal 2015)
Sales:             Approximately US$850 million 
                   (approximately 100 billion yen projected 
                    for fiscal 2015) 
Site Area:         163,000 square meters
Building Area:     Approximately 50,000 square meters
*Exchange rates used are 118 yen per one dollar, at the end of March
2007 for convenience only. Billion is used in the American sense of one
thousand million.


DENSO Corporation

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is
a leading global supplier of advanced technology, systems and
components. Worldwide, the company employs approximately 106,000 people
in 32 countries and regions, including Japan. Consolidated global sales
for the fiscal year ended March 31, 2006 totaled US$27.3 billion. DENSO
common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in
Japan. For more information, go to www.globaldenso.com or visit our
media website at www.densomediacenter.com.